Stefan Borson: Everton May Incur ‘£15m’ Loss Following Compensation Update

Burnley, along with Leeds United, Leicester City, Southampton, and Nottingham Forest, have sought compensation after Everton were penalized for breaching Profit and Sustainability Rules (PSR) during the 2021-22 and 2022-23 seasons.

Everton, one of the Premier League’s historic clubs, faced an eight-point deduction last season due to excessive spending, with league regulations permitting a maximum loss of £105 million over a rolling three-year period.

David Phillips KC, the chairman of the commission responsible for the first points deduction, confirmed that these clubs have legitimate grounds for compensation claims.

According to The Lawyer on 12 March, Everton have enlisted Mark Howard KC to lead their defense against Burnley’s claim in the upcoming summer proceedings.

Financial expert Stefan Borson, speaking exclusively to Football Insider, estimated Burnley lost approximately £58 million in broadcast revenue following their relegation from the Premier League.

The Clarets finished third-bottom in the 2021-22 season, four points behind Everton, who were later found guilty of PSR breaches in that campaign.

Burnley’s Compensation Claim and Financial Impact

Borson believes Burnley’s compensation claim will likely be between £10-15 million.

He explained to Football Insider:

“They lost around £58 million in broadcast revenue after dropping to the Championship.

The complexity arises because Everton’s breach occurred in 2021-22, but the punishment wasn’t applied until 2023-24.

“Burnley’s argument is that if Everton had complied with financial regulations, they would have survived.

This could have happened if Everton had received a points deduction earlier, reducing their total, or through other means.

“There is a strong chance that this will be treated as a loss of a chance claim. Burnley can argue causation, proving that without Everton’s overspending, they would have remained in the top flight.

“As a result, they could be entitled to a portion of their lost revenue. While the headline figure is £58 million, there are complexities to consider.

“For example, Burnley had effective clauses in their player contracts, enabling them to slash their wage bill by about 50 percent after relegation.

“When factoring in the parachute payment they received in the Championship, their actual financial loss might not be significant compared to a potential lower-tier Premier League performance.

“The compensation claim may not exceed £10 million. If the case involves probability adjustments based on the chance Burnley would have stayed up, the final amount could be reduced by 25 or 50 percent.

“A realistic estimate would be between £10 million and £15 million.”

Everton Face Challenges in Richarlison Transfer

On 13 March, Football Insider reported Everton will struggle to re-sign Richarlison in the summer transfer window.

Tottenham are eager to recover most of the £50 million-plus fee they paid to acquire the Brazilian forward in 2022.

Richarlison reportedly informed close friends of his desire to leave Spurs in January, with Saudi Pro League clubs expressing interest in securing his services.